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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Scientist who wrote (9537)	1/14/2000 1:53:00 PM
From: WR	Respond to of 29987

GLOBALSTAR USA PREPARES FOR COMMERCIAL LAUNCH Jan. 13, 2000 (MOBILE SATELLITE NEWS, Vol. 12, No. 1 via COMTEX) -- Globalstar USA is hoping a different target audience will help the company fare better in the mobile satellite phone service market than Iridium LLC [IRID], which filed for Chapter 11 bankruptcy court protection in August 1999. The wholly owned subsidiary of Vodafone Airtouch plc [VOD] unveiled its domestic pricing plan last week and will be ironing out the kinks in the system during this soft launch period as it prepares for the full commercial launch of service later this quarter. But while the company is going public with its domestic pricing and target markets, it is keeping subscriber projections under wraps. "Iridium got into trouble announcing dates and tying debt services to those dates," said Andrew Radlow, director of marketing for Globalstar USA. ...How Many American Subs Are Really Out There? While the satellite phone service provider is keeping quiet on its projections, one analyst offered her take on the fledgling company. "Globalstar needs less than 1 million subscribers to break even," said Leslie Taylor, president of Washington D.C.-based consultancy Leslie Taylor Associates Inc. Taylor has provided regulatory consulting assistance to Globalstar. But how many of those subscribers realistically can be culled from potential North American users, who constantly are bombarded with terrestrial wireless service providers offering cheap airtime and almost free telephones? Hidden within that answer is one of Iridium's mistakes that Globalstar USA is hoping to avoid. The company is not marketing its product to the world traveler. "Globalstar did not find a meaningful number of global mobile users," said Radlow. Which is a good thing right now, as the initial subscribers would only be able to use the phone in the United States, Canada and Mexico. Globalstar expects global roaming services to be available in Western Europe sometime during the first quarter and Brazil and Venezuela by mid year. "The global business traveler, which Iridium targeted, is not a large-enough market," Taylor agreed. "However, there are huge areas of the globe where neither wireline nor cellular reach." To that end, Globalstar USA is targeting the oil and gas, forestry, maritime industries, as well as government and military users and wilderness sports and leisure fanatics. But not everyone is convinced that the service will be a hit in the U.S. "I don't think the market in the U.S. is very big," said Roger Rusch, president of Palos Verdes, Calif.-based consultancy TelAstra Inc. "The market is highly developed [with terrestrial wireless services]. Very few people need this service." "The flaw is not that the satellite service is no good," Rusch continued. "What is really going on is that Globalstar and Iridium are too ambitious." Even without the projected numbers, Globalstar, according to published reports, expects to have 200,000 units in the distribution channel by the end of the first quarter. But that does not mean sales will reach that level. Additionally, Rusch noted that Globalstar and Iridium predict adoption levels that terrestrial wireless providers did not experience for many years . And while many will consider buying a typical cellular phone at prices that are as low as free, spending nearly $1,500 is a significant buying decision, even if the phone will operate at the cheaper terrestrial rates within wireless footprints, as the Globalstar USA offering does. "Satellite services are an extravagant design that is a bad mismatch between supply and demand, said Rusch. Globalstar USA Domestic Agent Retail Pricing Plan Plan Monthly Fee Incl. Minutes Add. Minutes Beyond Basic $29.99 0 $1.69 Beyond Borders $169.99 100 $1.49 Beyond Limits $369.99 250 $1.39 pricing does not include land-based international long distance charges and local termination fees, which are set by the customer's designated carrier. Source: Globalstar USA

To: Rocket Scientist who wrote (9537)	1/14/2000 5:41:00 PM
From: Maurice Winn	Respond to of 29987

<G and its affiliates certainly make it difficult for web based consumers and investors to have a favorable opinion about the company.* > What do you mean by that? You mean there are some consumers and investors who are NOT Web-based? I suppose there are some humanoids still roaming the 3D world who are not Web-dependent, but do they actually use any electronic devices at all and would they be a customer for a Globalstar phone? Are they actually human? That seems such a weird idea! No Web?!! I'll go out on the street and see if I can find some of them. Maurice